Harry Redknapp has admitted Luka Modric is "confused" regarding his future after the Tottenham Hotspur midfielder told the club he would like to join Chelsea, following their unsuccessful £22m bid for him last month.

Spurs are intent on keeping the 25-year-old and Daniel Levy, their chairman, informed the player at a meeting on Wednesday that he would not be sold. After Modric completed his first day of pre-season training on Thursday Redknapp said: "He's walked in today and is happy, but the kid's a bit confused at the moment.

"Other teams want him but we want him here and I want to keep him. He loves playing here. It's a difficult situation for him and I understand where he's coming from. We can't kid ourselves.

"He signed a contract here, we love him here and want him here. We don't want to sell our best players. He's a special player for us. We want him here and need him here."

Nikky Vuksan, Modric's representative, confirmed his client, who joined Spurs from Dinamo Zagreb for £16.6m in 2008, would not request a move but repeated the Croatia playmaker's statement of last month that he wants to play Champions League football; Spurs, who reached the quarter-finals last season failed to requalify for the competition.

"I don't think he'll hand in a transfer request. He will honour his contract," Vuksan said. "He wants to play [in the] Champions League and win trophies. The only way we can resolve this is to sit down and talk. Luka will report today for training and will do his best, as always.

"I have never been in a situation before where a player has had to fight a club and it's not something we want to do. The only official offer so far is from Chelsea and we haven't talked to any clubs. It's no surprise that there is interest in Luka, though, because he is a top, top player."

Modric is contracted until 2016 and Redknapp said that rather than selling his best performers he wants to recruit more, although the club are yet to make their presence felt in the summer transfer window. "We need to add to Modric. I've had a chat with Daniel Levy and we're looking to improve – we obviously need to. But it's not easy. Daniel has always spent money here and he'll do it again this year."

One player who is departing is Jonathan Woodgate, the club confirmed. After joining Spurs in January 2008 from Middlesbrough the former Leeds, Newcastle United and Real Madrid centre-half was limited to only 65 appearances due to a catalogue of serious injuries with his final setback, a groin problem, allowing him to play just one game in the last 15 months.

Redknapp was only willing to offer the 31-year-old a pay-as-you-play deal, despite rating him as one of the best English defenders of his generation. But after talks collapsed Woodgate is now a free agent.